Plant-based health company Affinity Energy & Health (ASX: AEB) has kicked off commercialisation of its fifth Affinity FeedMe algae product, a problem-solving addition to its product range with a longer shelf life and without the need for refrigeration, under its collaboration and distribution agreement with US-based Seachem Laboratories.
Affinity can now put another product on store shelves across the US, courtesy of Seachem’s extensive distribution network, with the first bulk order “received and set to be dispatched imminently,” according to Affinity.
Furthermore, the new product is set to be supplied to Seachem’s large network of US-based distribution centres and retailers.
Affinity has said that one of the key selling points behind its latest FeedMe phytoplankton product, is that it represents a “logistics breakthrough” in the global transportation of algae-based products, with inventory now able to be shipped worldwide without refrigeration.
Affinity’s primary focus is on developing industry-leading growing technology to produce commercial quantities of algae to supply key markets such as nutraceuticals, animal feed and aquaculture markets, medicinal cannabis and biofuels.
To live up to its ambitions, Affinity produces algae at its state-of-the-art growing facility in Atlanta and produces multiple high-demand species to service both the growing nutraceutical and aqua feed markets.
Affinity Energy and Health has also applied its industry-leading growing technology to the production of medicinal cannabis through strategic partnerships in Uruguay for the rapidly expanding cannabis market.
Progress so far
Earlier this year, Affinity hinted it could be expanding the capacity of its Atlanta product development plant, the location where the company manufactures its various algae products.
In its annual report, Affinity said it had completed the majority of the equipment delivery phase of the contract with Indian giant Reliance Industries and has now entered the commissioning phase. Based on current plans “commissioning will be completed during the last quarter of 2018,” the company stated.
In Atlanta, the product development plant has produced over 10 tonnes of algae biomass and is operating at full capacity. The biomass produced is then repurposed for the aquarist market via Seachem, currently considered as North America’s largest distributor of aquarist products.
“Currently we have four products on the market with another two scheduled for release this quarter,” the company said.
The new products are expected to open the export market with products that have a long shelve life, thus enabling transportation internationally without reducing product quality.
“This is a technical breakthrough for Affinity, as we are now able to provide a real logistical solution to the previously problematic issue facing many algae producers, that being the short shelf life of algae-based products,” said Mal James, executive chairman of Affinity Energy and Health.
“Through the commitment and expertise of our technical team we have now commercialised a high quality, long shelf life product that will be sold globally under our affiliation with Seachem,” added Mr James.
This morning’s defacto product launch helped Affinity shares to post an 8% gain, currently trading at 0.013 per share.